Improved performances at eight gold mines propelled Australian major
For the year ended June 30, Normandy produced 1.67 million attributable ounces gold, up 17% from the previous year. Total cash costs rose 2.5% to US$211 per oz., whereas realized gold prices fell 2.6% to US$394 per oz. The company hedges its production.
Production increases are attributed to record output at the Mt. Leyhon, Pajingo, Martha, Kaltails and Ity mines and an increased interest in the Yandal group of mines. Those mines — Bronzewing, Jundee and Wiluna — also achieved record production.
Even higher production is expected in the current fiscal year, with improvements at the Kalgoorlie and Tanami operations, expansions at the Pajingo and Martha mines, and new production from a recently formed partnership with
For the three months ended June 30, the company’s final quarter, Normandy’s share of gold production was a record 467,204 oz., up 18% over the previous quarter. However, total cash costs climbed to US$233 from US$215 per oz. in the third quarter.
Zinc production during the year totalled 110,355 tonnes, with total cash costs averaging US38 cents per lb. (net of byproduct credits). Mining and mill throughput rates at the Golden Grove mine have increased in each of the last four quarters, resulting in costs in the final quarter at 6% below budget.
The Kasese cobalt plant in Uganda produced its first cobalt cathode during the final quarter. At the Gladstone magnesium project in Australia, production of anhydrous magnesium chloride production was improved, and production of commissioning of the electrolytic cell is under way.
On the exploration front, drilling continued to intersect gold mineralization at Normandy’s projects in Australia and abroad. A 14-metre interval at the Tennant Creek mine in Australia’s Northern Territory averaged 66.4 grams per tonne. At the Ntotoroso project in Ghana, 129 metres averaged 3 grams, including 28 metres grading 8.7 grams.
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